Aboitiz Power wins bid for Tiwi-Makban geothermal complex Thursday, July 31, 2008
AP Renewables, Inc. (APRI), a wholly owned subsidiary of Aboitiz Power Corporation (AP), won the bid Wednesday (July 30) for the 747-megawatt (MW) Tiwi-Makban geothermal power facilities. The complex is composed of the 289-MW Tiwi plants in Albay and the 458-MW Makban facilities in Laguna and Batangas. The Power Sector Assets and Liabilities Management Corporation (PSALM) had bid out the two power assets as one package.
APRI’s winning bid of US$447M won over the bid of First Luzon Geothermal Energy, an investment vehicle fully owned by PNOC-Energy Development Corp.
The Tiwi complex consists of three plants: Plant A with two 60-MW units, Plant B with two 55-MW units, and Plant C with two 57-MW. The Makban plant complex in Laguna and Batangas consists of Plants A and B with two 63-MW units each, Plant C with two 55-MW units, Plants D & E with two 20-MW units each, and a binary plant with five 3-MW and one 0.73-MW units.
The bid for the both power facilities covers their generating assets, which were offered on an ”as is, where is” basis, structures and improvements, spare parts, and general plant equipment. It also includes the steam field facilities and the Geothermal Resources Sales Contract between PSALM and the Philippine Geothermal, Inc. (now Chevron Geothermal Philippines Holdings, Inc.), the steam supplier for the two facilities.
Also attached to the purchase of the Tiwi-Makban complex are more than 400-MW of power supply contracts, thus providing AP a ready market for the electricity that these facilities will generate.
"This acquisition is very strategic for Aboitiz Power. It is a significant addition to our portfolio of renewable energy sources bringing us closer to our vision of making Cleanergy available to every Filipino," said AP President & CEO Erramon Aboitiz.
Cleanergy is the Aboitiz brand of energy sourced from clean and renewable sources.
The Tiwi-Makban geothermal complex will be a significant addition to AP’s generating capacity following its successful bids for the Magat and Ambuklao-Binga hydropower plants in Northern Luzon and its acquisition of a 34% stake in STEAG State Power Inc., which owns and operates a coal-fired power plant in Misamis Oriental.
Upon closing of the Tiwi-Makban purchase, AP will have investments in generation facilities with a total generating capacity of 1,957 MW, more than 70% of which are powered by renewable sources of energy.